By Yogita Dand
Diwali celebrations begin much before the festival itself. The excitement builds up as homes are cleaned, gifts are planned, and shopping lists are made. Among all these preparations, one tradition that has stood the test of time is buying gold, especially on Dhanteras. For many families, this is more than a purchase, it’s a way of inviting good fortune and prosperity into their homes.
But in today’s world, gold is no longer just something we wear or store. It has become an important part of how people think about saving and investing for the future. And while jewellery still holds emotional value, it may not always be the smartest way to invest in gold.
The Hidden Costs of Jewellery
Buying gold jewellery feels special, but it comes with some drawbacks. When you buy ornaments, you pay making charges, which can add 8-15 per cent or more to the price, and these charges are not recovered when you sell the jewellery later. There can also be issues with purity, and storing physical gold safely can be a concern.
Jewellery is also less liquid; selling it quickly or at the right price isn’t always easy, and often, people hesitate to sell pieces that carry sentimental value. All these factors make jewellery more suitable for emotional reasons than for financial ones.
Gold Mutual Funds: A Smarter Way to Invest
For those who want to include gold as part of their investment plan, gold mutual funds offer a straightforward and intelligent alternative. These funds invest in Gold Exchange Traded Funds (ETFs), which track the price of gold. This means you receive the same benefits as owning gold, but without the hassle of storing it or worrying about its purity.
You can start investing with small amounts, set up a Systematic Investment Plan (SIP) in gold mutual funds, and gradually build your gold holdings over time. It’s safe, transparent, and can be easily managed online. When you need the money, you can redeem your investment just like any other mutual fund quickly and conveniently.
Finding the Right Balance
Gold continues to play a crucial role in a well-balanced investment plan. We usually recommend keeping about 10-15 per cent of your total investments in gold. It helps protect your portfolio when markets are uncertain and acts as a good hedge against inflation. However, it shouldn’t replace investments like equities or mutual funds, which offer higher long-term growth.
Blending Tradition with Smart Choices
Buying gold during Diwali has always been a tradition filled with warmth and emotion. However, today we can keep that spirit alive while also being financially prudent. Choosing gold mutual funds allows you to honour the tradition of gold buying just in a way that fits modern life.
It’s convenient, flexible, and helps your money grow without the worries that come with physical gold.
This Diwali: Shine with Smarter Decisions
As you celebrate this season of light and new beginnings, take a moment to review your finances as well. Let gold continue to symbolise prosperity not only in your home but also in your investment plan.
This Diwali, let your gold not just sparkle in jewellery boxes, but also work quietly in your portfolio, bringing you balance, security and peace of mind for the years ahead.
(The author is a certified financial planner & registered Mutual Fund distributor.)
[Disclaimer: The opinions, beliefs, and views expressed by the various authors and forum participants on this website are personal and do not reflect the opinions, beliefs, and views of ABP News Network Pvt Ltd.]
